Fares Up By 2.7 %

By: Stephen Kwabena Effah
Thursday, 04 May 2006

THE Ghana Road Transport Coordinating Council (GRTCC) has announced new fares in view of yesterday’s review in the prices of petroleum products.Figures made available to the Times show a 2.7 per cent increase in transport fares.

The price of petrol has gone up by 10 per cent.
Under the new fare regime, intra-city routes that were charging ў1,500 are now supposed to charge ¢1,540.

Mr Kojo Moses, chairman of the GRTCC, explained to the Times that fuel forms only 26 per cent of the operational cost build up in the transport sector, and added that 10 per cent increment in fuel prices should result in a 2.7 per cent increase.

The Ghana Road Transport Coordinating Council is the apex body of commercial road transport operators and comprises 18 transport unions and organizations.

Meanwhile, a team from the National Petroleum Authority, the Association of Oil Marketing Companies and the Chairman of the GRTCC, Mr Moses, toured some fuel stations in Accra to monitor the level of fuel price increases.

During the tour, it came out that the various oil companies where charging varying prices for petroleum products, which observers say, is an indication of competitive pricing among the Oil Marketing Companies.

This is the first time that Oil Marketing Companies have been given the opportunity to fix their own prices within margins determined by the NPA. This forms part of the gradual deregulation of the petroleum industry.

At the time of the visit, Total filling stations were selling a galloon of petrol at ¢38,3226.50, diesel ¢35,055 and kerosene ¢28,672.50.

At Shell filling stations, petrol was selling at ¢38,214, diesel, ¢34,600, while Mobil Stations had petrol at ў38,304, and diesel at ¢34,690.50.

Glory Oil filling stations visited were also selling a gallon of petrol for ¢38,326.50, and diesel ¢34,708.50.

The co-ordinator of Oil Marketing Companies, Kwame Antwi-Agyei, described as appropriate, the opportunity for the oil companies to fix their own prices, which should not exceed the prices fixed by the NPA.

He said “this is appropriate and effective for the economy and the consumers,” adding that that would ensure competition within the oil industry.
T
he Technical Director of the NPA, Isaac Tagoe, said that since the system is a new one, there may be teething problems which would be resolve in a short time.

He observed that almost all the filling stations visited had not displayed the new petroleum prices on their bill boards as required, stressing that the NPA will ensure the right things were done.

Meanwhile, the NPA has warned that oil companies that fail to display prices on billboards would attract the appropriate sanctions.

A release jointly signed by the chairman of NPA, Professor Ivan Addae-Mensah and the Chief Executive, J.D. Attafuah, said that the move is to ensure that there is no confusion between consumers and retailers.

It said the authority will henceforth determine the ex-refinery and the ex-pump prices applicable to the various petroleum products in accordance with the Customs and Excise Act 685 of 2005 and publish the maximum indicative ex-pump prices of petroleum products for the domestic market.

The release said that the authority will continue to monitor closely this phase of the deregulation exercise in line with its mandate to ensure that any immediate problems that may arise are resolved quickly.

It advised the consuming public to ensure that pump prices displayed at the various filing stations are exactly what they pay for, and that the prices are not higher than the maximum indicative prices published in the gazette.